Arbitration is a legal arrangement whereby both parties to a civil （commercial）dispute reach
an agreement to voluntarily submit the case to a third party to adjudicate in accordance with
specified procedures and rules and following the principle of impartiality, and whereby both parties
are bound to enforce the ruling.

◎ China International Economic and Trade Arbitration Committee

The China International Economic and Trade Arbitration Committee is the arbitration agency
in China that handles international economic and trade disputes. It is headquartered in Beijing,
with branch offices in Shenzhen and Shanghai.

◎ Arbitration Committees

Arbitration committees are standingbodies established in capital cities of provinces,
municipalities and autonomous regions. They can also be set up in other cities if necessary,
not according to administrative hierarchy.

◎ Arbitration Tribunals

Organizationally, an arbitration tribunal can be a collegiate panel or a sole arbitrator.

１．A Collegiate Panel

In case the parties agree to form a tribunal of three arbiters, each party should designate,
or ask an arbitration committee to designate, one arbiter, and the third arbiter, who should
be jointly selected by the parties or designated by the arbitration committee chairman
jointly authorized by the parties, should be the chief arbiter.

２．A Sole Arbitrator

In case the parties agree to form a sole-arbiter tribunal, the arbiter should be jointly
selected by the parties or designated by the arbitration committee chairman jointly
authorized by the parties.

Essential Components of Arbitration

◎ RulingOut the Jurisdiction of the Court

Arbitration or Adjudication

If the parties have reached an agreement on arbitration, it rules out the jurisdiction of the
court over the dispute; the parties can only apply for arbitration to an arbitration body rather
than bringing action to the court.

◎ OneInstance Being Final

This means that the ruling takes effect immediately upon pronouncement. Even if the parties
are not happy with the ruling, they cannot file a suit to the court for the same dispute or apply
for arbitration or reconsideration to arbitration organizations.

However, parties may apply to the court for a review and verification of the case and annulment
of the arbitration ruling if they believe it is indeed wrong and conditions for a legal revocation
have been met.